Assignment Task: At December 31, 2016, Teal Mountain Inc. Imports reported this information on its balance sheet.
Accounts receivable - $566,100
Less: Allowance for doubtful accounts - 35,860
During 2017, the company had the following transactions related to receivables.
1. Sales on account - $2,973,000
2. Sales returns and allowances - 36,176
3. Collections of accounts receivable - 2,542,300
4. Write-offs of accounts receivable deemed uncollectible - 40,190
5. Recovery of bad debts previously written off as uncollectible - 14,390
Required:
Question 1: Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
Question 2: Entry the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balance.
Question 3: Prepare the journal entry to record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $115,754.
Question 4: Compute the accounts receivable turnover.
Question 5: Compute the average collection period.
The professional tutors of Accounts Receivable Turnover Assignment Help service are always there to assist all the students, who are in academic needs.
Tags: Accounts Receivable Turnover Assignment Help, Accounts Receivable Turnover Homework Help, Accounts Receivable Turnover Coursework, Accounts Receivable Turnover Solved Assignments